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Bad credit loans for poor credit scores

Short term loans are often referred to as bad credit loans. This is due to the fact that they are designed to provide emergency cash for those with bad credit. So the question begs, does a no credit check loan exist?

At Moneyboat we always carry out a full credit check as part of our application process. This allows us to maintain our customer promise of responsible lending – ensuring our customers can handle paying back the borrowed funds. Start the process here to see if you are eligible for a loan today. If a person has a poor or low credit score along with bad credit history, funding their loan might be less likely. Although we do accept bad credit, it would not be in our customers best interest to lend unaffordable amounts.

Bad credit loans for emergency needs

Looking for emergency money for bad credit is common, so how do I get emergency cash?

 


bad credit loans

 

There are numerous businesses and organisations who are offering “no credit check payday loans.” However we advise you to be wary of these types of loan sharks. Organisations trying to advertise easy money never seem to come without their small print. Read up on all of their loan terms and conditions to ensure you won’t be hit with unexpected fees or expenses at the end of your loan agreement.

 

Is a bad credit loan right for me?

People who are struggling to get approved for a standard bank loan may decide to turn to a bad credit loan instead. Is a bad credit loan safe? Well that really depends on your financial situation. If you have had problems with credit in the past or are currently facing financial hardship then a payday loan may not be for you.

Being realistic with your circumstances is a great place to start. Why am I being refused credit? Why can’t I get a loan? If you are asking yourself these questions then it may be a good idea to take a look at your “Data Self”. This is  “the version of you out there made up entirely of your financial data”.

 

What is personal data?

 

Personal data means any piece of information that can be used to identify an individual. Every time you connect to one of your digital devices, be it your phone, tablet or laptop, you are creating a trail of user activity. This activity is tagged, categorised and collated to allow service providers to improve their services. By gaining a better knowledge of who is using their services they can give users more of what they want.

 

So, now that we know more about personal data lets look back at the concept of your Data Self. This non-tangible persona is made up of your credit card transactions, phone contracts, mortgages and loans, as well as other financial information. Companies such as Experian use this information to create a realistic view of their customer profile to make algorithmic decisions around financial applications. Understanding your Data self can lead you to being able to make improvements around your credit score.

 

High interest bad credit loans

Why do direct loans for bad credit have high interest rates? The reason for this is, as being that the lender is taking a risk on a low scoring applicant, they must hold a larger amount of collateral in exchange for the instant loan. Ideally we would advise building up your credit score and repaying your debts in full to allow successful application of a standard loan product.

 

Unsecured personal loans

 

Unsecured personal loans are loans granted without the condition 0f needing a personal asset as security. They are also known as loans with no guarantor from a direct lender. The advantage of an unsecured loan could be that in the case of being unable to repay, your personal assets will not be lost. As a disadvantage however, if you are unable to meet the re-payments the burden will rest on you alone. Secured loans require a guarantor and in the case of the customer being unable to repay, the guarantor will take the responsibility.

 

I can’t pay back my payday loan – what should I do?

 

Please remember that failure to make your loan repayments can result in an even lower credit score. There are many different reasons why people fall into a bad credit rating. Failing to keep up with payments on a previous credit agreement is just one of the reasons. Having a County Court Judgement against you is another. Additionally, never having had a credit card or loan can also make it difficult to raise your credit score – as there is no evidence in your favour to show that you are able to responsibly manage credit.

 

What do people use bad credit loans for?

 

According to research, over 33% of applicants use bad credit loans to cover their debts. Contrary to this, people who are managing their credit well will take out secured loans for items such as a new car.

 

What are the advantages of bad credit loans?

 

The most notable advantage of a bad credit loan is that you are able to obtain almost immediate funds. In a conventional lending method this would not be possible. The disadvantage of this type of short term loans is the high interest rates relative to other conventional loans. Direct payday lenders charge around 0.8% interest per day as an industry norm.

 

Who is most likely to have bad credit?

 

As you could assume, income and bad credit have a direct link. Although a good income doesn’t necessarily mean good spending habits, it can often be attributed to a higher credit score even if not always the case. Younger people are more likely to have worse credit than older people. Is this a sign that people improve their budgeting and spending strategy with age?

 

Talk to MoneyBoat

Learn more about the short term loan options we offer here at Moneyboat by contacting us today. Our services are flexible, convenient an direct. We are direct lenders, not brokers which means no extra fees for you. At Moneyboat we understand the fluctuation of financial up’s and down’s and are here to help you ride the storm.

Moneyboat offer loans designed to help you on a short-term need. We don’t recommend this as a long term financial solution. If you are experiencing financial issues we suggest you seek formal financial advice.